You have $500,000 saved for retirement. Your account earns 8% interest. How much will you be able to pull out each month, if you want to be able to take withdrawals for 15 years?

You want to buy a $198,000 home. You plan to pay 10% as a down payment, and take out a 30 year loan for the rest.

a) How much is the loan amount going to be?

b) What will your monthly payments be if the interest rate is 6%?

c) What will your monthly payments be if the interest rate is 7%?

You want to buy a $31,000 car. The company is offering a 5% interest rate for 48 months (4 years). What will your monthly payments be?

You can afford a $1250 per month mortgage payment. You've found a 30 year loan at 8% interest.

a) How big of a loan can you afford?

b) How much total money will you pay the loan company?

c) How much of that money is interest?

You want to be able to withdraw $45,000 each year for 25 years. Your account earns 9% interest.

a) How much do you need in your account at the beginning?

b) How much total money will you pull out of the account?

c) How much of that money is interest?

You want to buy a new car. You can afford payments of $400 per month and can borrow the money at an interest rate of 4.3% compounded monthly for 5 years.

How much are you able to borrow?

How much interest do you pay?